The Canada Pension Plan Investment Board’s subsidiary, the CPP Investment Board Europe, is forming a partnership to develop logistics facilities across Europe.

GLP Continental Europe Development Partners I, a partnership between the pension fund, Canadian real estate firm QuadReal Property Group and global logistics firm GLP CDP I, will develop logistics facilities in Belgium, France, Germany, Italy, the Netherlands and Spain. The partners are putting forward a total of US$1.1 billion, with the CPPIB contributing US$510 million.

Read: Ivanhoé Cambridge launches joint venture in Brazilian logistics real estate

“This partnership deepens our long-standing relationship with GLP, one of our largest global partners and establishes a new relationship with QuadReal,” said Andrea Orlandi, managing director and head of real estate investments for Europe at the CPPIB. “GLP CDP I is a key part of our development-led growth strategy in the logistics sector globally, and will significantly enhance our existing holdings in continental Europe. We expect GLP CDP I to grow quickly in scale and perform well over the long term given rising e-commerce sales and consumer demand for ever-shorter delivery times in Europe.”

Gazeley, GLP’s Europe platform, has benefitted from the steady demand from online retailers like Amazon.cpm and Wayfair.com, the release noted. “The proposed establishment of GLP CDP I reflects the confidence that institutional investors have in GLP and Gazeley, our Europe platform,” said Ming Mei, co-founder and chief executive officer of GLP. “We are committed to a long-term growth strategy in Europe. Demand from institutional investors to partner with GLP remains strong and we see opportunities to expand our fund management platform further.”

Read: Construction starts on Ivanhoé Cambridge’s California logistics centre

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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